Housebuilder announces bonus dividend payout after record interim results

North West housebuilder Redrow reported record half year results, to December 31, today.

The firm, based in Ewloe, near Chester, saw revenues jump nine per cent to £970m, while pre-tax profits of £185m were a five per cent improvement on the same time last year.

Legal home completions rose 12% to 2,970, and the group’s total order book of £1.162bn is 11% better than last year. The firm also completed its 100,000th home during the half year period.

Net cash stood at £101m, compared with £63m in June 2018.

Redrow is also planning to return £111m to shareholders in a special interim dividend of 30p per share, on top of the 10p per share interim dividend return, up from 9p last year.

This is the final report that chairman and founder Steve Morgan will make, before retiring from the board at the end of next month, virtually 10 years to the day since he returned to the business on March 30, 2009.

He will be succeeded as executive chairman by John Tutte, Redrow’s current group chief executive.

Mr Morgan said today: “In this, my final report as chairman, it gives me great pleasure to announce that Redrow has once again delivered record results for the first half of the financial year.

“During the period legal completions increased by 12% to 2,970, whilst pre-tax profits were up 5% to £185m.

“As a result of our continuing strong earnings and cash performance, we are proposing a 30p per share cash return to shareholders through a B Share Scheme, in addition to a 10p per share interim dividend.

“This scheme enables all shareholders to participate equally in proportion to their holdings and should be treated as capital for most UK tax resident shareholders.”

He added: “The market during the run up to the festive period and the first two weeks of 2019 was subdued by macroeconomic and political uncertainty.

“However, sales over the last three weeks have bounced-back with reservations running at similar levels to last year’s strong market activity.

“Overall, private sales for the first five weeks of 2019 were £156m (2018: £166m).

“Nevertheless, given our record £1.2bn order book, our strategy remains on track giving me every confidence that this will be another year of significant progress for Redrow.”

He said: “It is nearly 45 years since I founded Redrow and when I step down as chairman next month it will be exactly 10 years since I returned to the business.

“I am proud of the legacy I leave behind, having completed over 6,000 homes for the first time in 2018 and handed over our 100,000th Redrow home last October.

“Redrow has a very strong team, an excellent balance sheet and the Heritage Collection product which I believe is the best in the industry.

“Most importantly, Redrow has a great future under John Tutte’s leadership who will take over from me as chairman.”